Stay-at-Home Parent Calculator

Beyond the Paycheck

Deciding whether one parent should stay home involves far more than just comparing salaries. There are significant non-financial benefits and considerations. However, understanding the purely financial trade-offs is a crucial part of the decision-making process. This calculator helps quantify that aspect. Curious about the true value of your time? Check out our "Real" Hourly Wage Calculator.

How the Comparison Works

This tool models your household's potential net worth (focused on investment growth) over a chosen period under two scenarios:

1. Scenario A (Both Work): Assumes both parents continue working. The *effective* annual savings contributed to investments is calculated as:
   (Parent 1 Savings + Parent 2 Savings) - Childcare Costs - Other Work-Related Costs
2. Scenario B (One Stays Home): Assumes Parent 2 stops working. The *effective* annual savings is simply:
   Parent 1 Savings
   (Childcare and other work costs associated with Parent 2 are avoided).

Both scenarios start with your "Current Investments" and grow year by year based on the "Est. Annual Investment Return" and the respective *effective* annual savings calculated above. See how this growth compounds with our Compound Interest Calculator.

Interpreting the Results

The calculator shows the projected final investment value for each scenario and highlights which one leads to a higher financial net worth on paper. Often, the "Both Work" scenario results in a higher number due to the additional income and savings, even after accounting for childcare and work costs.

However, the difference might be smaller than you think, especially if childcare costs are high or Parent 2's savings contribution is relatively low after factoring in their work-related expenses. Seeing this difference quantified can help you weigh the financial trade-off against the non-financial benefits of having a parent stay home. Worried about investment costs? Use the Investment Fee Analyzer.